Navigating Job Loss
A Financial Game Plan for When the Paycheck Stops
Written by Crystal Bowles, CFP®
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Over the years, I’ve walked alongside clients going through unexpected job transitions—some planned, some blindsiding. And I’ve walked through seasons of uncertainty in my own family, too. It’s never easy. When your world shifts overnight, it’s easy to feel overwhelmed and unsure where to even begin. But having a plan—even a simple one—can help you take the next step with more confidence. That’s what this guide is for.
Restructuring. Streamlining. Pivoting.
If you’re like me, you’re probably tired of seeing these buzzwords pop up in every company memo or press release. Translation? People are getting laid off.
Whether you saw the writing on the wall or the news hit out of nowhere, job loss can be disorienting. It’s not just about losing a paycheck—it’s about losing structure, a sense of identity, and sometimes your confidence. But this moment can also be a turning point. With the right steps, you can move through it with more clarity and build a stronger foundation for whatever comes next.
Step 1: Take a Beat Before You Spiral
Let’s start with the mental piece. Losing your job might feel like failure—but it isn’t. It’s disruption. And disruption, while uncomfortable, can create space to rethink your path.
Before firing off 200 applications or shutting down entirely, take a pause. Reflect. Ask yourself:
- Was I fulfilled in that role?
- Was I burned out?
- Did the job align with my values, or was I just coasting?
This is your chance to consider what you want from the next chapter—not just what’s next, but what’s right.
I’ve had clients use this time to explore completely different paths—some went back to school, others launched side businesses, or shifted into roles that finally felt meaningful. You don’t need to figure it all out today. But you can start giving yourself permission to imagine something better.
Step 2: Face the Numbers Without Flinching
Once you’ve taken a breath, it’s time to look at your finances with a clear head.
Start with your runway:
- What’s in your checking, savings, or emergency fund?
- What are your monthly essentials—mortgage/rent, utilities, insurance, groceries?
- Do you have any income coming in—severance, side gigs, unemployment?
This isn’t about panic—it’s about clarity. Understanding what you have gives you a sense of control.
From there, make adjustments:
- Cut subscriptions or automatic transfers temporarily.
- Revisit your discretionary spending categories—like dining out or entertainment.
- Check for any payment flexibility programs with insurance or utilities.
Even small cuts can extend your financial runway significantly. This is about being strategic—not stuck.
Step 3: Get Some Cash Flow Going—Even if It’s Not Your Dream Gig
This part can be humbling—but it’s also empowering.
While you’re searching for your next full-time role, don’t wait for the perfect opportunity to land. Look for ways to bring in income, even if it’s short-term:
- Rideshare driving or delivery apps
- Freelance or consulting work
- Tutoring, caregiving, or helping with someone’s small business
Some clients who picked up gig work during a layoff found that they enjoyed the flexibility so much, they kept it going after they were re-employed.
It’s not about pride—it’s about possibilities. Generating income buys you time, reduces stress, and gives you the freedom to make thoughtful decisions—not rushed ones.
Step 4: Know When (and How) to Tap Long-Term Resources
In some cases, you may need to access long-term savings. If you go this route, proceed carefully—and with guidance.
Some retirement accounts allow for hardship withdrawals, and some 401(k) plans may offer loan options. But these decisions can come with taxes, penalties, or long-term consequences, so it’s best to talk with a financial and tax professional before moving any money.
You may want to:
- Explore hardship withdrawal options for specific needs like medical expenses or job loss
- Consider a retirement account loan, if available
- Roll over your 401(k) to an IRA for lower fees and more flexibility
The best time to understand your “last resort” options is before you need them. That way, if the moment comes, you’ll be making a prepared decision—not a panicked one. Knowing your safety net is there can shift your entire mindset.
Step 5: Stay Connected—It’s Your Secret Weapon
Job loss can feel isolating. But now is not the time to go quiet.
Send a quick text to a former colleague. Get coffee with someone in your field. Post a simple update on LinkedIn to let people know you’re looking.
More than 70% of jobs are filled through personal networks—not job boards. And staying connected isn’t just good for your career—it’s good for your mental health.
You don’t have to ask for favors—just be visible and let people know what you're looking for. It might be a casual conversation that opens the next door.
Let’s Build a Plan—Together
You don’t have to know all the answers right now. And you don’t have to figure this out alone.
At Financial Advice & Consulting, we don’t push products or rush decisions. We sit down with you, look at the full picture, and help you build a plan that fits your goals and your current reality.
Whether you’ve recently lost a job, or just want to know you’d be okay if it ever happened, we’re here for you. The earlier we talk, the more options we have.
Because here’s the truth:
Nobody cares more about your financial future than you do.
And we’re here to help you preserve it.
Visit www.financialac.com to set up a time to talk. No pressure—just a conversation.
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual
Investing involves risk including loss of principal. No strategy assures success or protects against loss.
A plan participant leaving an employer typically has four options (and may engage in a combination of these options), each choice offering advantages and disadvantages.
• Leave the money in his/her former employer’s plan, if permitted;
• Roll over the assets to his/her new employer’s plan, if one is available and rollovers are permitted;
• Roll over to an IRA; or
• Cash out the account value.